Tompkins helps companies develop an effective approach to inventory management. We analyze the impact of internal and external factors to integrate inventory with purchasing, manufacturing, distribution, marketing and sales to create inventory policies that make sense. Our solutions consider:
- Client needs and their influence on in-stock/fill rates, lead time and accuracy
- Costs incurred from purchase transaction expenses, manufacturing set-up/changeover expenses and more
- Operation changes driven by promotions, recalls and SKU proliferation
- Technology and its ability to provide trend, profiling and seasonality-based forecasting; trading partner visibility; and planning collaboration
- Corporate goals, whether revenue, unit sales, RONA/GMROI or A/P increase
Tompkins looks at every area impacting your inventory to create a comprehensive inventory management strategy that will enhance financial performance and client satisfaction. We support the execution of a world-class inventory management by improving inventory performance, sku rationalization and profitability to help create solutions that:
- Improve forecasting accuracy
- Create more logical stocking (and non-stock) policies
- Manage cycle stock to reduce costs
- Establish dynamic safety stock levels based on client service
- Focus on cross-dock, cycle count and transferring and discontinuing SKUs effectively
- Reduce purchase transaction and manufacturing set-up/changeover costs
- Continuously improve inventory performance
Our Proof
Don’t just take it from us. Learn how our projects deliver on our promise of high impact, high value and high confidence in the client examples below.
Home Respiratory Services Provider
Network & Route Optimization
Challenge
Network inefficiencies and routing issues leading to dissatisfied customers, high employee turnover and additional costs
Requirements
- Optimized network and transportation routing focused on increased efficiency, customer satisfaction and cost savings
- Order fulfillment strategies and schedules to improve driver satisfaction and efficiency
Results
- Reduced annual operating costs by $4.8M
- Improved customer satisfaction and driver retention
Leading Energy Retailer
ERP Implementation
Challenge
Decentralized processes and distribution network following several acquisitions
Requirements
- Cohesive enterprise resource planning (ERP) system focused on reducing costs and improving efficiency across all of the retailer’s businesses
- Process standardization and the creation of a system infrastructure capable of supporting the ERP implementation
Results
Developed an ERP implementation roadmap that achieved:
- $30M in annual procurement savings
- $15M in labor efficiency gains
Services Include:
Inventory Performance Improvement
The execution of a step-by-step process to address overall performance is necessary to build a process, not a project. Tompkins provides guidance on the following areas:
- Business processes: Effective processes for demand planning and supply management that enhance the coordination between customer demand and product supply
- Inventory management policies: Optimal SKU-location stocking policies, customer service-driven safety stock policies and economics-driven cycle stock/replenishment order quantity policies to optimize cost and customer service objectives
- Performance measurement: Selection of performance metrics with the best aggregation levels/drill-down capabilities, creation of specifically formatted results reports from existing data and development of review processes critical to understanding and addressing the underlying driving forces of performance
- Technology: Reconfiguration of existing or implementation of new demand planning and supply management applications to effectively leverage technology for best inventory performance
- Organizational roles and responsibilities: Client-specific custom supply management training, workload balancing and organizational structure
SKU Rationalization & Profitability
There are several proven strategies that will provide payoff in the inventory areas of finance and customer service. Some of these strategies for lowering inventory costs involve having less inventory by locating it when and where it is needed and incorporating market considerations to address service vs. shelf space holistic opportunity costs.
In today’s marketplace, it is critical to understand the components of a SKU’s lifespan and margin opportunity, including:
- Documentation of process, not project
- Initial launch
- Expiration and cross-dock capability
- Service window from time of receipt to store shelf
- Regional deployment
- Centralization timing with service impacts
- Holdback projection and methodology
- Dynamic markdown strategy
